Press Release

Higher education likely to be a more sober experience, says report on student fees
Final findings of research into impact of fees on student experience

The era of long parties, and a carefree time of study and socialising, may well be a thing of the past, according to the findings of a report looking into the impact of fees on student life, carried out by researchers at the University of Southampton and The Knowledge Partnership and funded by the Higher Education Academy. The final report shows that the impact of ‘top-up fees’ could change the whole campus experience for English students.

The one-year study on Changing fee regimes and their impact on student attitudes to higher education was funded by the Higher Education Academy as part of its remit to lead the development of research to improve the quality of the student learning experience.

The study was undertaken by a team led by Professor Nick Foskett (University of Southampton), with David Roberts (The Knowledge Partnership), Dr Felix Maringe (University of Southampton) and Matt Hyde (Goldsmith's College).

It examined how universities in England are responding to the new fee model in their admissions policies and practices. It asked prospective students in England what they knew about the new fee regime, how this affected their decisions on whether and where to apply to university and their expectations about the nature and value of higher education.

Part of the study was based on interviews with Australian and New Zealand students, where fees can be as much as Aus$8,000 (£3240). It reveals that the economics of student life have turned students there away from heavy partying and driven them to take study more seriously, supported by part-time jobs. Student life is also likely to be less campus-oriented and more drawn out, as students struggle to pay off their debts before they have even started a career.

The study also examined how universities in England are responding to the new fee model in their admissions policies and practices. It asked prospective students in England what they knew about the new fee regime, how this affected their decisions on whether and where to apply to university and their expectations about the nature and value of higher education.

The researchers concluded that:
• Potential students had a broad knowledge of the new fees system, and most knew that they do not have to pay fees upfront and can get loans. However, most had little knowledge of the detailed issues related to funding their study, such as the institutional support available to them in the form of grants, bursaries and scholarships
• Students are likely to be rational about the proposed fees increase in 2006, expecting that they will translate into better services and support for them during their years of study
• They are unlikely to base their decision to go to university primarily on the issue of fees; some are strongly inclined towards accessing careers first and using HE as a career enhancement strategy rather than as career finding strategy
• There does not seem to be any substantial evidence from Australia and New Zealand that suggests that increasing fees reduces participation in HE
• There is a likelihood of greater local participation in HE as a strategy to cushion students from increased costs of study. Alongside this will be a strong likelihood of parental involvement in the decision-making of their children about going to university.

“It’s interesting to see how the notion of a separate campus life is pretty much non-existent now in Australian universities. Students are working harder – both at their studies, and in part-time jobs in the cities. Their life is much more one of being an adult in a community, rather than isolated scholars. Part-time work is a fact of life for them, and they tend to keep friendship groups from school and the community as they carry on studying closer to home,” said Professor Nick Foskett, who led the research team for Southampton.

Unlike the system in Australia and New Zealand, however, the top-up fees system in England takes into account parental income rather than future prospects as a basis for the level of support. This means that students are judged not on how much they will earn in future life, but on their parents’ wealth at the time they go to university. The students who are most likely to be affected adversely are those who are just on the edge of the bursary threshold – the lower middle classes. Their parents earn too much to qualify them for support, but not enough to make the payments easy.
David Roberts of The Knowledge Partnership comments:

“Australia is much less obsessed with class and access. And in some ways it’s much fairer – students are all given the same loans, but repayments are based on how much you earn later. So if you are from a poor family, and choose to go into a high-earning field such as Law, you will pay more retrospectively for your degree. If, however, you are from a rich family, and choose to persue a low-paid profession like teaching, your course will cost less as a reflection of your future income.”

Mike Prosser, the Academy’s Director of Research and Evaluation, said:

“There are clear issues both for Government and for universities and colleges to consider in this report’s findings. It’s likely that more students will choose to study locally to reduce costs. Students are also likely to expect high quality services and support for them as ‘customers’, as well as continuing to receive high quality teaching. Issues of employability will become more important too as students become more aware of the need to be well prepared for the world of work, so there will be a need for greater investment in employment-related training in higher education institutions. And both Government and universities will need to continue to look at strategies for reducing the impact of fees on vulnerable groups of students.”

The study’s findings also indicate that:
• Universities are moving to expand international and postgraduate taught degrees, partly as a result of fears that the undergraduate market will now decline, and of a predictable decline in the school-leaver cohort. However, Masters places may be difficult to fill, as future graduates seek a break from debt and feel the need to start earning more rapidly.
• Blended learning and accredited Continuing Professional Development are likely to be key areas for future expansion as students move away from the traditional model of immediate progression to full-time postgraduate education, in favour of a more flexible “earn as you learn” lifestyle.
• The undergraduates just above the threshold for financial support are likely to suffer from the impact of higher fees. Universities predict that the heaviest burden will fall on the middle-class students, who will be exempt from grants and bursaries, but mandated to pay the full fee.
• Student advisers and counsellors are predicting more complaints from UK students who will regard themselves as customers with rights and higher expectations.

Tensions between international students and home students are also likely to rise, following Australian examples.
• HEIs are likely to put extra resources from ‘top-up fees’ into their estate and to improve student services.
• In England, the cap on fees has also inflated the pricing market, as the effect of peer pressure and the assumption that the cap would be a benchmark of “good quality” has driven nearly every HEI to price all its undergraduate degree courses at £3,000, irrespective of the cost of teaching or the career prospects associated with the degree.

Notes for Editors
1. The report, Changing fee regimes and their impact on student attitudes to higher education, by Nick Foskett, David Roberts and Felix Maringe, is available on the Higher Education Academy website at http://www.heacademy.ac.uk/4407.htm
2. The Higher Education Academy award supporting the project is one of ten made by the Academy in 2005-06. Outcomes from the projects are intended to inform HE policy and practice, and to contribute to debate on improving the learning experience. The views expressed in the research reports are not necessarily those of the Higher Education Academy.
3. The project team consists of Professor Nick Foskett (Southampton University), David Roberts (The Knowledge Partnership), Dr Felix Maringe (Southampton University) and Matt Hyde (Goldsmith’s College).
4. The Higher Education Academy is an independent organisation which works with universities and colleges, discipline groups, individual staff and organisations to help them deliver the best possible learning experience for students. It provides an authoritative and independent voice on policies that influence student learning experiences, supports institutions in their strategies for improving the student learning experience, leads and supports the professional development and recognition of staff in higher education, and leads the development of research and evaluation to improve the quality of the student learning experience. It has a UK-wide network of Subject Centres providing discipline-based support for learning and teaching.
5. The Knowledge Partnership was set up in October 2004 by HE experts David Roberts, Louise Simpson and Stephen Holmes, providing international consultancy and research for education and other knowledge sectors.
6. The University of Southampton is a leading UK teaching and research institution with a global reputation for research and scholarship. It received its Royal Charter as a university in 1952 and is now one of the UK’s top 10 research universities, offering first-rate opportunities and facilities for study and research across a wide range of subjects in humanities, health, science and engineering. The University has nearly 20,000 students and 5000 staff based across its campuses in Southampton and Winchester. Its annual turnover is in the region of £287 million.

Further information and contacts
For interviews with Professor Nick Foskett, please contact the Media Relations Office at the University of Southampton.

1. Professor Nick Foskett, University of Southampton, tel: 023 8059 3538, email: N.H.Foskett@soton.ac.uk, http://www.education.soton.ac.uk
2. David Roberts, tel: 0113 2556990, email: d.roberts@theknowledgepartnership.com
3. Sue Wilson/Sarah Watts, Media Relations, University of Southampton, tel 023 8059 3212
4. Andrea Rayner, The Higher Education Academy, tel: 01904 717543 or 717500, email: andrea.rayner@heacademy.ac.uk, www.heacademy.ac.uk